In a letter, EFA warns the EU Commission that the amended Value Added Tax Law in Latvia violates European legislation and linguistic rights
In Latvia, different languages coexist. Its people speak mostly Latvian (64%), but also Russian, Belarussian, Latgalian, or Roma languages. Nevertheless, in such a diverse country, under a new law buying a book in Spanish, Hungarian, or Dutch is subject to much lower taxes (VAT 5%) than purchasing one in some minority languages, such as Russian, Belarussian or Roma languages (VAT 21%), directly affecting the final price of the item and thus the customer’s pocket.
This is a clear case of discrimination based on language, which is against EU law. As an EU member state, Latvia is obliged to meet European standards. EFA has taken action and raised the issue. This week, we sent a letter to the EU Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, Michael McGrath, and Commissioner for Intergenerational Fairness, Youth, Culture, and Sport, Glenn Micallef, warning about the discriminatory consequences of this law. “We call on the Commission to launch an infringement procedure in this matter as soon as possible”, said EFA President Lorena López de Lacalle.
EU legislation protects linguistic equality
Until the end of 2025, all books and printed media enjoyed a reduced VAT rate of 5% in Latvia. But the Latvian Parliament has just amended the Value Added Tax Law. From 1 January 2026, the reduced tax applies only to books and printed media in certain languages: the state language (Latvian), Latgalian, the Liv language of Latvia’s indigenous population, as well as the official languages of EU Member States, the European Economic Area Member States, the Swiss Confederation and EU candidate countries, or the official languages of the Organisation for Economic Co-operation and Development. The reduced rate does not apply to books in several minority languages in Latvia, which are now subject to the (much higher) standard rate of 21% VAT.
As EFA stressed in its letter to the Commission, this legislation violates European law. The prohibition of discrimination based on language is enshrined in Article 21(1) of the Charter of Fundamental Rights of the EU. We believe that this provision is violated by the new legislation. The new legislation also does not respect linguistic diversity (Article 22 of the Charter) and the rights of persons belonging to minorities (Article 2 of the Treaty on European Union). Apart from that, the new legislation violates the prohibition of indirect discrimination based on ethnic origin in access to goods and services, which is enshrined in Council Directive 2000/43/EC of 29 June 2000.
It is the responsibility of the European Commission to guarantee the compliance of its member countries with its common rules and values. Therefore, we expect a swift response from the European institutions, so that the Latvian authorities bring national legislation into full compliance with the EU acquis. “No language spoken within the European Union is of lesser importance. The language of each EU minority deserves equal recognition and protection. We expect the Commission to fully uphold EU law and to safeguard the rights of all Europeans”, highlighted EFA Vice-President Kerem Aptourachim Oglou.